Dividing the marketing into different geographical units such as nations, states, cities, counties, regions, or neighborhoods. Hilton Hotels customizes rooms depending on the location.

Divide the market into groups on the basis of variables such as age, race, gender, family size, generation, social class, occupation. Age and life cycle stage means consumer wants change with age. Crest offers toothpaste to kids, adults, and older people.

Buyers are divided into different groups based on pyschological/personality traits, lifestyle, or values. Sharper Image in Canadian Airports did well because of the lifestyle of many of the customers. Marlboro man relates to the rugged consumer.

Marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Heavy beer drinkers account for 87% of the total beer consumed, so that's who to market to.